Business & Economy

Federal mediators brought in on port workers' strike

Trucks remain idle at the APM Terminals at the Port of Los Angeles as a result of the clerical workers strike.
Mae Ryan/KPCC
Clerical workers at the Port of Los Angeles protest outside of the APM Terminals on December 4th, 2012.
Mae Ryan/KPCC
Trucks and ships remain idle at the APM Terminals at the Port of Los Angeles as a result of the clerical workers strike.
Mae Ryan/KPCC
Gina, a clerical worker at the Port of Los Angeles, pickets in front of a truck that cannot enter the APM terminal due to the ongoing strike. L.A. Mayor Antonio Villaraigosa says the strike is costing the local economy billions.
Mae Ryan/KPCC

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Federal mediators on Tuesday night will attempt to negotiate a deal between clerical workers on strike at the Ports of Los Angeles and Long Beach and a group representing their employers.

The 450 workers, organized under the International Longshore and Warehouse Union, have been on strike for more than a week. They have been picketing in front of the entrances to several terminals, prompting closures because thousands of longshoremen refuse to cross the picket lines.

But the economic impact of the strike extends beyond the port. About $1 billion worth of goods move through the ports each day and the delay is costing local firms like Los Angeles-based toy manufacturer Megatoys tens of thousands of dollars.

CEO Charlie Woo said there would normally be 400 to 500 workers stuffing candy into plastic bags at his firm, just in time for Valentine’s Day and Easter. But on Tuesday, roughly 100 people were working.

Megatoys estimates the strike has stalled $1 million worth of its goods. Workers have less to do now, but when the goods finally do arrive at Megatoys, Woo said he'll have to pay employees overtime in order to get the products to retailers in time.

The last time there was a work stoppage of this magnitude was 10 years ago, when employers locked out longshoremen. Woo said that lockout cost his firm millions of dollars.

It’s unclear how much progress has been made in talks between the unionized clerical workers and their employers, represented by the Los Angeles/Long Beach Harbor Employers Association. The last contract was negotiated more than two years ago.

Late Monday night, Los Anegles Mayor Antonio Villaraigosa, who came back from a trade mission in South America, tried to get both sides to settle, but to no avail.

The workers say their employers have outsourced their jobs to Costa Rica, India and elsewhere.

“It’s not good for anybody and corporations need to be more accountable and responsible to the communities here and the country,” said Craig Merrilees, spokesman for the International Longshore and Warehouse Union.

The clerical workers earn $41 an hour. Getzug told KPCC's AirTalk that there is a proposal to bring compensation packages from $165,000 to $190,000 over the life of the contract.

Getzug said the employers want more flexibility on staffing levels. He said if a worker is sick or on vacation, the employers want to be free from the obligation of bringing a temporary worker in if there is no work to do.